FLORIDA DEPARTMENT OF LAW ENFORCEMENT ADDENDUM #1 Bid Number: ITB #1403 Bid Title: Computer Equipment Financing Opening Date: August 29, 2013 @ 2:00 PM EST Addendum Number: One (1) Date: August 26, 2013 ITB Page(s) & Section(s): Page 7, New Section 1.7 Page 8, Section 2.0; Page 16 Section 4.1.2; Pages 22-26 Attachment B Schedule of Equipment (as attached) Page 26 Attachment B Schedule of Equipment Page 27 Attachment C-1 Payment Schedule Page 28 Attachment C-2 Payment Schedule Responses to Questions submitted by prospective respondents (as attached) Deletions are indicated by “strikethrough” or reference. Additions, updates or replacements are indicated by underscore, reference or highlighting. Section 1 – Introductory and General Information 1.7 Reservation of Right to Use Consolidated Equipment Finance Program (CEFP) Under Section 287.064, Florida Statutes, the Department of Financial Services (DFS) administers a Consolidated Equipment Financing Program (CEFP). When FDLE released this ITB, DFS did not have sufficient funds in the Program to finance the projects described in the ITB. DFS is now working to secure additional funds for the program. In the event that DFS secures additional funds, FDLE reserves the right to seek financing for one or both projects though the CEFP. This could result in the rejection of all, or a part of all, bids, and in the former eventuality, cancellation of this ITB. Section 2 – Special Conditions 2.0 PAYMENT Buyer promises to pay, in accordance with Section 215.422, Florida Statutes, the initial installment payment to the Sellers, in full, upon acceptance of the Equipment, per Attachment C (1 and 2). The total balance due for purchase of the Equipment shall be paid to the Contractor in accordance with Attachment C (Payment Schedule) which is incorporated herein for all purposes. In no case shall interest begin to accrue in favor of the Contractor, its Assignee, or any other person or entity until 30 days after acceptance of the Equipment by the Buyer in the form of Attachment D (1 and 2) attached hereto. Notwithstanding any claim or dispute which may hereafter arise between Buyer and Seller, Buyer will make all payments to Contractor as required under this contract. Buyer hereby covenants to take such actions as are necessary under the
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FLORIDA DEPARTMENT OF LAW ENFORCEMENT
ADDENDUM #1
Bid Number: ITB #1403 Bid Title: Computer Equipment Financing Opening Date: August 29, 2013 @ 2:00 PM EST Addendum Number: One (1) Date: August 26, 2013 ITB Page(s) & Section(s): Page 7, New Section 1.7
Page 8, Section 2.0; Page 16 Section 4.1.2; Pages 22-26 Attachment B Schedule of Equipment (as attached) Page 26 Attachment B Schedule of Equipment Page 27 Attachment C-1 Payment Schedule Page 28 Attachment C-2 Payment Schedule Responses to Questions submitted by prospective respondents (as attached)
Deletions are indicated by “strikethrough” or reference. Additions, updates or replacements are indicated by underscore, reference or highlighting. Section 1 – Introductory and General Information 1.7 Reservation of Right to Use Consolidated Equipment Finance Program (CEFP)
Under Section 287.064, Florida Statutes, the Department of Financial Services (DFS) administers a Consolidated Equipment Financing Program (CEFP). When FDLE released this ITB, DFS did not have sufficient funds in the Program to finance the projects described in the ITB. DFS is now working to secure additional funds for the program. In the event that DFS secures additional funds, FDLE reserves the right to seek financing for one or both projects though the CEFP. This could result in the rejection of all, or a part of all, bids, and in the former eventuality, cancellation of this ITB.
Section 2 – Special Conditions 2.0 PAYMENT
Buyer promises to pay, in accordance with Section 215.422, Florida Statutes, the initial installment payment to the Sellers, in full, upon acceptance of the Equipment, per Attachment C (1 and 2). The total balance due for purchase of the Equipment shall be paid to the Contractor in accordance with Attachment C (Payment Schedule) which is incorporated herein for all purposes. In no case shall interest begin to accrue in favor of the Contractor, its Assignee, or any other person or entity until 30 days after acceptance of the Equipment by the Buyer in the form of Attachment D (1 and 2) attached hereto. Notwithstanding any claim or dispute which may hereafter arise between Buyer and Seller, Buyer will make all payments to Contractor as required under this contract. Buyer hereby covenants to take such actions as are necessary under the
Laws of Florida to plan and budget for receipt of a sufficient appropriation of funds to discharge its obligations to make all payments required under this contract when due.
FDLE (Buyer) plans to issue a purchase order to Unisys Corporation (Seller) under terms and conditions specified in State Term Contract 250-000-09-1, Network Infrastructure – Equipment and Services. The lowest responsive Respondent to this Invitation to Bid will be the Assignee of the contract with Seller. The amount specified for the Unisys Libra 460 Computer System, less the initial payment made by FDLE, will be paid by the Respondent to Unisys Corporation in accordance with Section 215.422, F.S., after installation and acceptance of equipment documented by the completion of Attachment D-1 Receipt Certificate, of the Equipment Financing Contract.
MorphoTrak MBSS Matchers FDLE (Buyer) plans to enter into a sole source contract with MorphoTrak, Inc. (Seller). The lowest
responsive Respondent to this Invitation to Bid will be the Assignee of the contract with Seller.
The amount specified for the MorphoTrak MBSS Matchers, less the initial payment made by FDLE, will be paid by the Respondent to MorphoTrak, Inc., in accordance with Section 215.422, F.S., after installation and acceptance of equipment documented by the completion of Attachment D-2 Receipt Certificate, of the Equipment Financing Contract.
THIS ADDENDUM NOW BECOMES A PART OF THE ORIGINAL ITB.
THE ADDENDUM ACKNOWLEDGEMENT FORM SHALL BE SIGNED BY AN AUTHORIZED COMPANY REPRESENTATIVE, DATED AND RETURNED WITH THE ITB RESPONSE AS
FAILURE TO FILE A PROTEST WITHIN THE TIME PRESCRIBED IN FLORIDA STATUTE 120.57(3) OR FAILURE TO FILE A BOND OR OTHER SECURITY WITHIN THE TIME ALLOWED FOR FILING A BOND SHALL CONSTITUTE A WAIVER OF PROCEEDINGS UNDER CHPATER 120 FLORIDA STATUTES.
Total - MorphoTrak BIS - Phase 2 Upgrade 2,650,000
Initial Payment to MorphoTrak 650,000
Amount to be Financed 2,000,000
ITB 1403
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ATTACHMENT C-1 PAYMENT SCHEDULE
Buyer: Florida Department of Law Enforcement Equipment Title: Amount to be Financed: $ Compound Period: Quarterly Nominal Annual Rate: _______ Planned Acceptance Date: The first initial installment payment to the Contractor is due within 30 days following acceptance and subsequent installment payments shall be due quarterly (90 days) thereafter.
Payment Number
Payment Amount
Interest
Principal
Balance
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$ $ $ $
ITB 1403
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ATTACHMENT C-2 PAYMENT SCHEDULE
Buyer: Florida Department of Law Enforcement Equipment Title: Amount to be Financed: $ Compound Period: Quarterly Nominal Annual Rate: _______ Planned Acceptance Date: The first initial installment payment to the Contractor is due within 30 days following acceptance and subsequent installment payments shall be due quarterly (90 days) thereafter.
Payment Number
Payment Amount
Interest
Principal
Balance
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2.
3.
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$ $ $ $
FDLE ITB 1403
TECHNICAL QUESTIONS
Respondent Question Number
Question Response
1
Does either the State or the FDLE have a financing document that would be the basis for the financing agreements for this project, or can lenders offer their own version of financing documentation?
FDLE acknowledges that the term “financing” normally implies the existence of a security interest of some sort for the benefit and protection of the lending party. However, this ITB is for an unsecured loan for the purchase of equipment, as defined and specified in the ITB. The ITB has been modified to clarify this intent.
2
a. Related to Question 1 above, the FDLE has the option to secure this financing under a contract where the interest income to the lender is considered federal tax-exempt to the Lender. If properly done, this type of financing may lower the overall project cost to the FDLE due to reduced interest rates being offered. However, there are specific documentation requirements for tax-exempt lease purchase financing in order to meet IRS requirements for tax-exempt financing that are not specifically addressed in the ITB documentation.
b. Will the FDLE consider financing bids that are offered on a tax-exempt basis?
c. If so, will the FDLE agree to the additional documentation requirements that may be necessary to properly document a tax-exempt transaction?
See Response to Question #1. This ITB does not contemplate or allow for any type of leasing arrangement for the equipment purchased. With that reservation, FDLE will consider bids offered on a tax-exempt basis, if that is allowed by the applicable law. In that event, the Respondent may submit a separate cost sheet title “Option 1”.
3
a. Since the MorphoTrak MBSS Matchers equipment is not due for acceptance by the FDLE until April 2014, will the Buyer consider escrowing the financing funds for this portion of the project in order to secure a current market interest rate?
b. Otherwise, will the FDLE accept a financing bid that is subject to indexing of the interest rate through the projected closing/funding date for this portion of the overall project?
a. The Department will not consider escrowing the financing funds for this portion of the project. b. The Department will not consider the indexing of the interest rate.
4 Is this financing for the computer system secured by the State of Florida’s full faith and credit? (Section 287.0641, Florida Statutes)
Yes.
5
How is this financing program different than the consolidated financing of deferred-payment purchases authorized in Section 287.064, Florida Statutes?
See Responses to Questions # 1 and 2. This ITB is intended to enable FDLE to pay the costs associated with two specific projects, and does not involve DFS as a party.
6 Section 4.1.3 requires full funding within 30 days of receipt of the Department’s fully executed Receipt
At this time, FDLE does not foresee the need to modify these dates.
Certificate. Section 4.1.7 provides anticipated acceptance dates of October 31, 2013 and April 30, 2014. Are there any events that would speed up or delay those timelines?
7
Section 2.10 E-Verify requires the successful bidder to utilize E-Verify, will you accept an acceptable alternative - our current method is manual checking of i-9 verifications. As a Nationally Chartered bank we have other Federal requirements but are not required to participate in the E-Verify Program.
No. Executive Order Number 11-02 encourages FDLE to require the use of E-Verify by all contractors. It is, accordingly, a requirement for this ITB. (E-Verify is an Internet-based system that compares information from an employee's Form I-9, Employment Eligibility Verification, to data from U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility. This is a free service. Responders should be registered before award.)
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a. Is it the department’s intent to review and use the lease agreement provided by Lessor or Lessor’s counsel?
b. Would the department like samples documents provided with the bid proposal?
See Responses to Questions # 1 and 2.
9
Will Lessee consider proposals with exceptions to the terms and conditions provided?
See Responses to Questions # 1 and 2. Although Section 1.4 of the ITB allows FDLE to reject any additional or exceptional terms and conditions proposed by a Respondent, FDLE will consider proposals with exceptions to the terms and conditions provided in the ITB if determined to be in conformance with applicable law and in the best interest of the State.
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We at IGF have worked closely with the State of FL over the past few years and I've closed business with several State entities including Department of Financial Services (DFS), Florida Lottery, NSRC, SSRC, USF and others. During our conversations with DFS, we entered into a master agreement for financing that was signed off on by DFS. This is an industry standard vehicle for funding IT product whether it be hardware, software, services or other IT products of value. Gaining signature at such an agency as DFS has enabled us to state with confidence that our T's and C's which were negotiated by State of Florida attorneys and have been vetted by a prominent agency, and are fair to be used by other agencies.
a. Question: Would FDLE consider using the already-inked master agreement between IBM Global Financing and State of Florida, DFS?
a. For FDLE to consider using the referenced “master agreement” would require modifying this ITB in a manner FDLE is not prepared to do.
b. See Response to Question #9. c. Payments would be made by FDLE
directly to the Sellers of the Libra 460 system and MBSS Matchers. The ITB has been modified to make this intent clear.
b. If not, would your group engage in conversations with our legal to arrive at agreed upon terms?
c. In section 4.1.1 I see that there is an initial payment shown for both the Libra 460 system and also MBSS Matchers system of $55,798 and $650,000 respectively. How would these payments be remitted? To whom would these payments be remitted? Would these amounts be paid to the leasing company in an upfront payment (i.e. a "first" payment)? OR to the vendor